Replacement Costs and Understanding the Value of a Building for Insurance Purposes

Property replacement, reproduction and reconstruction costs

There are many different approaches to establishing the value of a building or structure. Selecting the best option for you will not only depend on your ultimate goal but also the manner in which the value is determined. Six of the biggest challenges that come up time after time include: Replacement, Reproduction, and Reconstruction Costs… […]

Convective Storm Modeling: The Difference is in the Details

convective storm modeling

You’re likely already familiar with catastrophe (CAT) modeling, a method of determining risk exposure in hurricane- or earthquake-prone regions. But look out your window right now. Do you spy dark gray rainclouds on the horizon? If so, you might just be looking at a convective storm, and this common weather pattern is changing the face […]

Earthquake Risks: How Architectural Features Affect Seismic Resistance

earthquake risk: how architectural features affect seismic resistance

The age-old saying, “The bigger they are the harder they fall” is believed to have originally come from boxing. But for those of us in property risk management, it’s also a fair description of how buildings of certain structural types can react to seismic events. In fact, there are a lot of architectural and logistical […]

What’s in a Replacement Cost Value? (And What’s Not!)

replacement costs for building damage like this flood

by Sandra Hou, Valuation Consultant In the insurance industry, replacement cost value (often referred to simply as “replacement cost”) is one of the most common and acceptable values used to insure properties. In my line of work, we are often hired by risk pools to value their members’ properties for replacement values, in order to make […]

Property Risk Management for Winter Storm Damage

winter storm damage

When winter weather ravages regions unaccustomed to the icy attentions of Jack Frost (like one perilous February in Texas) the effects can be devastating and linger well-after the winter fury itself has passed. We’re talking about winter weather-related property damage, and the National Oceanic and Environmental Administration (NOAA) indicates that between 1980 and 2020, winter […]

Windstorm Mitigation: How Architectural Features Affect Storm Resistance

windstorm mitigation

In the past, we’ve discussed how architectural details affect earthquake resistance, and how documenting those details for your insurance Statement of Values (SOV) can help you secure the right insurance coverage at the best rates. So today, we’ll talk about the other common way your building can be affected by risk — windstorm. Like the seismic […]

2022 Construction Cost Trends and Property Valuation

construction cost trends

COVID-19’s business ramifications extend well-beyond the more popularly-discussed healthcare and restaurant industries. Throughout 2021 and into ’22, the construction industry faces skyrocketing costs, presenting significant challenges for new construction projects as well as property repair and replacement work. This, in turn, creates a dilemma for organizations with large property portfolios. How do you place value […]

Contents Modeling: the Intersection Between Asset and Risk Management

contents modeling

Modeling Contents Gives Risk Managers an Effective Way to Account for What’s Inside a Building To secure accurate insurance coverage, risk managers must establish replacement costs for both buildings and their contents. Onsite, physical inspections and value trending based on a previously determined replacement cost are two of the methods used to determine a buildings insurable value. When it […]

Ensure Your Property Is Properly Insured (…try saying that 5 times fast)

ensure your property is properly insured

From business continuity planning to insurance policy management, risk managers have their hands full when it comes to being prepared for a potential loss. Time and again, we hear stories of entities filing insurance claims only to find they didn’t have adequate coverage. If you’re managing a large property portfolio, ensuring your buildings and structures are sufficiently […]

Desktop Valuations: Don’t Judge a Pump House by Its Cover

We’ve heard story after story of entities getting stuck with the bill after a catastrophe due to property values gone awry. These unfortunate instances expose how differences between an assumed property value and one attained on foot, by a trained professional aren’t always noticed until it’s far too late. How did it happen? It often […]